Ecolab’s Schuman Campus in Eagan was the site of a Water Technology Business Summit that aimed to promote an industry with 900 establishments employing 16,334 people in 2012 in Minnesota. (Staff photo: Bill Klotz)

Minnesota makes a splash in water technology

The Land of 10,000 Lakes may still be covered in ice, but water was on the minds of state officials and business leaders who gathered Tuesday at Ecolab’s Schuman Campus in Eagan.

The Minnesota Department of Employment and Economic Development’s Water Technology Business Summit, attended by more than 150 people, is the latest of 19 state-sponsored events since 2009 that have aimed to make the most of the state’s position as a leader in water technology.

Minnesota’s water technology companies make up one of the state’s so-called business clusters, a group of closely related industries operating in a particular region, said Lee Munnich, a senior fellow and director of the State and Local Policy Program at the University of Minnesota’s Humphrey School of Public Affairs.

In 2012, the state ranked 10th in the nation for $729 million in foreign sales of water and wastewater treatment technology. In all, the industry’s concentration in Minnesota is about 39 percent greater than the national average, a measure called a location quotient.

The economic activity can be seen in the major companies operating in Minnesota. Switzerland-based Pentair, which has its U.S. headquarters in Golden Valley, worked with Target Field on a water reuse system that saves 2 million gallons of water a year. Chaska-based Aeration Industries creates technology that aerates water. St. Paul-based Ecolab produces wastewater treatment products, membranes and other water technology products for a variety of industries.

The industry had about 900 entities employing 16,334 people in 2012, according to the Minnesota Trade Office. The size of the workforce is on par with those in the hospitality and tourism or entertainment industries, Munnich said during a presentation. Pay for workers in the Twin Cities ranges from $20.87 per hour for chemical equipment operators and tenders to $53.30 for natural sciences managers, according to Greater MSP.

Munnich said in an interview after his presentation that Minnesota has become a water powerhouse largely because existing companies see business opportunities.

Ryan Rogers, a global business manager for water infrastructure renewal in 3M Co.’s Electrical Markets Division, described how the Maplewood-based company’s scientists created a lining that seals leaking pipes without forcing utility companies to dig a trench.

The opportunities for making money could be huge. By 2025, about 40 percent of the world’s population, or 3.2 billion people, are expected to live in “water-stressed environments,” Rogers told attendees. That’s up from 24 percent, or 1.6 billion, in 2007. With about 20 percent of water lost through leaky pipes and other network problems across the globe, there will be great demand for 3M and others like it to provide technology that makes the most of limited resources.

Michael Langley, CEO of Greater MSP, said the industry meshes well with other strong industries in the state — such as medical devices and food — that address growing challenges.

“Our economic development premise is that food solutions, water solutions and health solutions will drive the global economy,” said Langley, whose regional economic development group was among the event’s sponsors.

But competition from other water clusters is huge, as well. Wisconsin, with $647 million in water technology exports, is ranked 11th behind Minnesota. Milwaukee leaders have organized a Water Council, partnerships with universities, and more to boost the industry. Todd Gleason, Pentair’s senior vice president for growth, noted that his company accounts for a third of Milwaukee’s water technology jobs.

“Make no mistake about it: Milwaukee is creating a cluster,” Gleason said.

Minnesota’s water technology workforce has also declined from a high of 22,584 in 2008 to 15,781 in 2011, according to the Minnesota Trade Office.

Still, the 11,395 water-related jobs in the Twin Cities in 2012 were about twice that of Milwaukee and ahead of other Midwestern challengers like St. Louis; Oakland County, Mich., and Cedar Rapids, Iowa, according to Greater MSP. That total is expected to grow 9 percent over the next decade.

Meanwhile, state leaders plan to continue efforts to make Minnesota a water leader. The Trade Office and other organizations have roundtables planned. Twelve University of Minnesota researchers, led by Munnich, are submitting a grant request to study commercialization activities.

“It is exciting to see an industry with so much potential right in our sweet spot,” Langley said.